Presentation Background 4

What Does Six Sigma Really Mean??

Rahul Laxman IyerSix Sigma Black BeltASQ Certified Quality EngineerMesa AZ USA

11 November 2015

Doctrine of Six Sigma: Assertions

Continuous efforts to achieve stable and predictable process results (e.g., by reducing process variation) are of vital importance to business success.

Manufacturing and business processes have characteristics that can be measured, analyzed, controlled and improved.

Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

Doctrine of Six Sigma: Features

A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.

An increased emphasis on strong and passionate management leadership and support.

A clear commitment to making decisions on the basis of verifiable data and statistical methods, rather than assumptions and guesswork.

Doctrine of Six Sigma: Origin

Six Sigma term comes from Statistical Quality Control

Evaluates Process Capability

Processes that operate with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO)

Service marked in 1991 by Motorola

Other early adopters included: GE, Allied Signal, and Honeywell

Doctrine of Six Sigma: Origin

Recently Six Sigma has also been linked to Lean Manufacturing

Combination of Lean & Six Sigma Lean Six Sigma has been adopted by numerous companies including:Verizon

Dana Corporation

IBM

Amazon

Doctrine of Six Sigma: Origin

ISO 13053:2011, defining a Six Sigma process, published in 2011

Methodologies of Six Sigma

Two Main Project Methodologies:DMAIC

DFSS / DMADV

Based upon Deming PDCA Cycle

Methodologies of Six Sigma: DMAIC

D-DEFINE: Define the system; Establish the project goals, specifically.

M-MEASURE: Measure key aspects of the current process; Collect relevant data; Calculate the 'as-is' Process Capability

A-ANALYZE: Analyze the data; Verify cause-and-effect relationships. Determine the relationships;

I-IMPROVE: Improve or optimize the process based upon obtained knowledge; Set up pilot runs to establish process capability.

C-CONTROL: Control the future state process; Implement control systems; Continuously monitor processes

Methodologies of Six Sigma: DFSS / DMADV

D-DEFINE: Define design goals; Consistent with customer demands and the enterprise strategy.

M-MEASURE: Measure and identify CTQs, product capabilities, process capability, and risks.

A-ANALYZE: Analyze; develop and design alternatives

D-DESIGN: Design an improved alternative

V-VERIFY: Verify the design, set up pilot runs, implement the production process

Implementation Roles

Executive Leadership: Includes the CEO and other members of top management; Responsible for setting up a vision for Six Sigma implementation; empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements

Champions: Take responsibility for Six Sigma implementation across the organization in an integrated manner; act as mentors to Black Belts.

Master Black Belts: Identified by Champions, act as in-house coaches on Six Sigma. Guide Black Belts and Green Belts.

Black Belts: Operate under Master Black Belts to apply Six Sigma methodology to specific projects; focus on Six Sigma project execution and special leadership with special tasks,

Green Belts: Employees who take up Six Sigma implementation along with their other job responsibilities, operating under the guidance of Black Belts.

Etymology of a Six Sigma Process

The term "six sigma process" comes from the notion that if one has six standard deviations between the process mean and the nearest specification limit

The 1.5 Sigma Shift

Experience has shown that processes usually do not perform as well in the long term as they do in the short term.

Sigma levelSigma (with 1.5 shift)Defects Per Million OpportunitiesPercent defectivePercentage yieldShort-term CpkLong-term Cpk

1-0.569146269.00%31.00%0.330.17

20.530853831.00%69.00%0.670.17

31.5668076.70%93.30%10.5

42.562100.62%99.38%1.330.83

53.52330.02%99.98%1.671.17

64.53.40.00%100.00%21.5

75.50.0190.00%100.00%2.331.83

Application

Utilized mostly in large organizations

Companies with fewer than 500 employees are perhaps less suited to Six Sigma implementation or need to adapt the standard approach to make it work for them

Six Sigma still does contain a large number of tools and techniques that work well in small to mid-size organizations though

Criticism

Lack of originality

Too Many Consultants Who Have Limited Knowledge (Severely Oversold)

Potential negative effectsMany of the implementers of Six Sigma lag on the S&P 500, and few entered into bankruptcy

Over-reliance on statistical tools

Stifling creativity in research environmentsReduction in creativity cited by 3M Corporation

Lack of systematic documentation